Stock options come in various forms,the choice of which is largely dependent on the tax treatment for the executive and the company.

Question

Quizplus · Accepted Answer

This statement is true. The form of stock options chosen can affect the tax treatment for both the executive and the company. For example, incentive stock options (ISOs) are subject to specific tax rules that may be more favorable for the executive, while non-qualified stock options (NSOs) may offer more flexibility for the company.

Stock Options Come in Various Forms,the Choice of Which Is